The NEPA Business Finance Center, through its pool of federal, state, and local funds, provides low-interest loans to qualified small businesses. Interest rates currently range from 5% to 8% (subject to change) and are fixed throughout the term of the loan — regardless of any upward movement in prime lending rates.
The objective is to provide financing to help small business create/retain jobs, attract additional investment from banks and other sources of private and public funding.
Loans through this Program offer repayment terms standard in today’s credit markets. Generally, loans are used to supplement other financing by providing up to 50% of the loan amount with maximum of $5.5 million
NEPA Loan Advantages
Low, fixed interest rates
Lower down payments
Standard loan term maturities
NEPA Loan Program Process and Features
The NEPA Business Finance Center, through its pool of federal, state, and local funds, provides low-interest loans to qualified small businesses and micro loans to start-up new to market businesses and entrepreneurs. The rates are fixed throughout the term of the loan regardless of any upward movement in the prime rate. The rates for the micro loan programs are market competitive.
Loan Program Features
- Low Interest Rates – NEPA’s interest rate for most programs are below the prime lending rate.
- Low Down Payment – Reduced down payments to make additional working capital available for the customer.
- NEPA’s interest rate is fixed throughout the loan term.
- NEPA can assist businesses in completing necessary paperwork and applications
Information Required with NEPA Loan Application
- Financial Statements (must include Balance Sheet and Income Statement)
- Annual Financial Statements and/or Income Tax Returns for last three years
- Latest Interim Financial Statements (Internal)
- Projected Financial Statements (Start-up Company, three years/ Existing Company, one year)
- Personal Financial Statements of all Principals/Guarantors with at least 20% ownership
- Resumes of Key Personnel
- Collateral listing with appropriate Appraisals
- Price Quotes to verify entire Project Costs
- Other information may be required (Other loan approval memoranda, letters of intent to purchase product,etc.)
The most recent program added to the NEPA financing products is the SBA 504 Program. This program offers long term, market based, fixed rate, subordinate financing for fixed assets. The 504 Program provides 40% financing with a maximum loan of $5.5 million dollars. Eligible small businesses must have less than 500 employees and meet income and net worth thresholds. A wide variety of business sectors are eligible for loan consideration.
Loan Program Features
- Interest Rate
Attractive Fixed-interest rates currently 3% to 5%
Loan Terms
- Machinery and Equipment
10 Years (new or used) - Land and Building (Acquisition, Renovation, and Construction)
up to 25 Years